Obamacare Spurs Private Sector Digital Health Investments

Obamacare Spurs Private Sector Digital Health Investments

Obamacare has led to lots of changes in healthcare, so it should come as no surprise that digital health has been affected in a major way by the plan. Just one example is the release of the Apple Watch, which you’ve surely been hearing about.

Of course, that’s not the only digital health product or service that’s available these days. You’ve also probably seen references to eHealth, mHealth, Telemedicine, Health Data, and more. These are also examples of digital health, and you will be seeing more of them in the coming years, thanks to the increased funds raised by digital health firms lately. More specifically, such firms raised about $5 billion in 2014 alone, which is much more than in previous years. Compare this amount with 2010’s mere $1.1 billion, or even 2013’s $2.8 billion.

In the past, digital health care seemed like a pipe dream, especially if you consider how slow electronic health records were to materialize. But that’s changed in the last year, and it’s mainly thanks to Obamacare. Not only did it get people thinking about the importance of healthcare more than ever, but it also made sure millions became insured.

At the same time, there is more focus on improving healthcare in general. That’s because when patients get improved care, they tend to be healthier, resulting in lower healthcare costs overall. So it’s no wonder that digital health companies have been able to raise so much money lately.

In particular, Big Data companies have raised the most, making up more than $1 billion of the $5 billion that digital health companies have raised overall. Companies meant to help patients navigate the changing healthcare structure have also raised an impressive amount totaling over $790 million. Coming in third place for fundraising are companies dealing with practice management, having made nearly $600 million.

Obamacare might not have the support of everyone, but it has certainly made a difference in the digital health industry.